EMERYVILLE, Calif., Feb. 13, 2019 (GLOBE NEWSWIRE) -- XOMA Corporation (NASDAQ: XOMA) announced today it has received a $5.5 million payment from Rezolute, Inc., related to the Companies’ 2017 license agreement, as most recently amended on January 7, 2019.
“Our business model is fundamentally designed to generate significant long-term royalty-based revenue as the underlying assets are commercialized. Moreover, many of our license agreements include the potential for XOMA to receive significant milestone payments as the licensed assets progress. The receipt of this milestone payment is a good example of XOMA further strengthening its balance sheet with additional non-dilutive capital. This capital can be deployed to further expand our portfolio of assets from which we have the potential to earn future milestone payments and royalties,” commented Jim Neal, Chief Executive Officer at XOMA.
In 2017, Rezolute, Inc., formerly known as AntriaBio, Inc., acquired an exclusive global license to develop and commercialize XOMA 358 (now RZ358) for all indications. Under the January 2019 amendment, Rezolute agreed to pay XOMA an additional $8.5 million in a series of quarterly payments beginning later this year.
About XOMA Corporation
XOMA has built a significant portfolio of products that are licensed to and being developed by other biotechnology and pharmaceutical companies. The Company’s portfolio of partner-funded programs spans multiple stages of the drug development process and across various therapeutic areas. Many of these licenses are the result of XOMA’s pioneering efforts in the discovery and development of antibody therapeutics. The Company’s royalty-aggregator business model includes acquiring additional licenses to partner-funded programs. For more information, visit www.xoma.com.
Certain statements contained in this press release are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, including statements regarding the potential of XOMA’s portfolio of royalty licenses to partnered programs and licensed technologies to generate milestone and royalty proceeds over time and create potential cash flow. These statements are based on assumptions that may not prove accurate, and actual results could differ materially from those anticipated due to certain risks inherent in the biotechnology industry, product candidates subject to out-license agreements are still being developed, and our licensees may require substantial funds to continue development which may not be available; we do not know whether there will be, or will continue to be, a viable market for the products in which we have an ownership or royalty interest; we may not be successful in entering into out-license agreements for our product candidates; if our therapeutic product candidates do not receive regulatory approval, our third-party licensees will not be able to market them. Other potential risks to XOMA meeting these expectations are described in more detail in XOMA's most recent annual report on Form 10-K, in subsequent quarterly reports on Form 10-Q and in other SEC filings. Consider such risks carefully when considering XOMA's prospects. Any forward-looking statement in this press release represents XOMA's views only as of the date of this press release and should not be relied upon as representing its views as of any subsequent date. XOMA disclaims any obligation to update any forward-looking statement, except as required by applicable law.
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Source: XOMA Corporation